The Analytical Overview of the Main Currency Pairs on 2017.10.30

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.16529

Open: 1.16063

% chg. over the last day: -0.34

Day's range: 1.15939 – 1.16337

52 wk range: 1.0341 – 1.2069

Last week, the US dollar strengthened significantly relative to the major currencies. Support was provided by optimistic statistics, the growth of the government bond yield, and prospects for implementing tax reform in the United States. At the moment, the key trading range on the EUR/USD currency pair is 1.16000-1.16400. In the near future, a technical correction is not ruled out. We recommend opening positions from the key marks.

Today, the news background is rather calm:

- Statistics on the costs of individuals in the US at 14:30 (GMT+2:00);

- The preliminary data on inflation in Germany at 15:00 (GMT+2:00).

The signals of the indicators are different. The price has fixed below 50 MA and 200 MA, which signals the power of sellers.

The MACD histogram has begun to rise and is above the signal line, which indicates a correction of the EUR/USD currency pair.

Stochastic Oscillator is located in the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.16000, 1.15500

Resistance levels: 1.16400, 1.17000, 1.17350

If the price fixes above the local resistance of 1.16400, we expect a technical correction on the EUR/USD currency pair. The movement is tending to 1.16750-1.17000.

Alternative option. If the price fixes below the round level of 1.16000, it is necessary to consider sales of EUR/USD. The movement is tending to 1.15500.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.31578

Open: 1.31275

% chg. over the last day: -0.24

Day's range: 1.31223 – 1.31690

52 wk range: 1.1450 – 1.3618

At the moment, there is a correction of GBP/USD after a sharp decline last week. The price is testing the resistance level of 1.31650. Local support is the mark of 1.31400. It is not excluded a further correction of the trading instrument. The meeting of the Bank of England will be the key event this week. Today, we recommend opening positions from the key levels.

The news background on the UK economy is calm.

Indicators do not send accurate signals. The price has crossed 50 MA and 200 MA.

The MACD histogram has begun to rise and moved to the positive zone, indicating a bullish sentiment on GBP/USD.

Stochastic Oscillator is located in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.31400, 1.30900

Resistance levels: 1.31650, 1.32250

If the price fixes above 1.31650, a further correction in the GBP/USD currency pair is expected. The target movement level is 1.32000-1.32250.

Alternative option. If the GBP/USD quotes fix below the local support of 1.31400, you need to look for entry points to the market to open short positions. The movement is tending to 1.31000-1.30900.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.28456

Open: 1.28178

% chg. over the last day: -0.30

Day's range: 1.28159 – 1.28365

52 wk range: 1.2059 – 1.3795

Last week aggressive purchases were observed on USD/CAD. The Canadian dollar weakened against the US dollar by more than 250 points. Nevertheless, a technical correction is not ruled out in the near future. At the moment, the USD/CAD currency pair is consolidating in the range of 1.28100-1.28450. It is recommended to open positions if the price fixes above/below these marks.

Today, the publication of important economic reports from Canada is not planned.

The price has fixed above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy USD/CAD.

Stochastic Oscillator is located in the neutral zone, the %K line has crossed the %D line. There are currently no signals.

Trading recommendations

Support levels: 1.28100, 1.27800, 1.27150

Resistance levels: 1.28450, 1.29000

If the price fixes below the local support of 1.28100, we expect a correction of the USD/CAD quotations. The target level of movement is 1.27800-1.27500.

Alternative option. If the price fixes above the level of 1.28450, it is necessary to consider buying USD/CAD. The movement is tending to the round level of 1.29000.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 113.965

Open: 113.725

% chg. over the last day: -0.25

Day's range: 113.527 – 113.835

52 wk range: 99.53 – 118.67

Last week the USD/JPY currency pair formed a rather strong offer zone of 114.200-114.400. At the moment, the bearish sentiment is prevailing on the trading instrument. The key trading range is 113.450-113.800. The USD/JPY quotes have the potential to further decline. We recommend paying attention to the dynamics of the US government bond yield.

In September, the volume of retail sales in Japan increased by 2.2%. Experts expected the figure of 2.5%.

The price has fixed between 50 MA and 200 MA, which act as strong dynamic levels of support and resistance.

The MACD histogram is located in the negative zone and continues to decline, which signals the bearish sentiment for USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates the USD/JPY price drop.

Trading recommendations

Support levels: 113.450, 113.100

Resistance levels: 113.800, 114.200

We expect a downward trend on the USD/JPY currency pair. If the price fixes below the level of 113.450, we recommend you to look for entry points to the market to open short positions. The movement is tending to the round level of 113.000.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.